Redevelopment drives up price of luxury floors in South Delhi

VMPL
New Delhi [India], July 1: South Delhi is one of India's poshest regions, inhabited by wealthy businessmen, diplomats, bureaucrats, NRIs, lawyers, and doctors, among others. The well-established infrastructure, accessibility to corporate hubs in Gurugram, Noida, and Delhi, and the Indira Gandhi International Airport add to the appeal of residing here. The strong sense of community and nostalgia further adds to the emotional uniqueness of the place.
These upscale and upmarket 'South Delhiwallahs' are greatly influenced by the latest in fashion and style from their interactions and travel abroad. From clothes to cars, jewellery to accessories, this lifestyle elevation is now entering their residences in terms of architecture and amenities. The nuclearization of families has further necessitated the need to upscale traditionally built homes, facing congestion and dilapidation, into swanky residences with new-age amenities.
Needs and benefits of redevelopment
Most of these buildings have become old and dilapidated and face issues like seepages. They lack the basic facilities like energy-efficient lighting, hi-tech security systems, elevators etc. Additional space, with the change in FAR regulations, provides for more floor space, leading to taller buildings and new-age amenities and additional area.
The redevelopment of buildings involves not just zero monetary and physical investment by the owner but also brings along monetary compensation.
"Many new developments on vacant plots or redevelopment of old buildings in South Delhi are being undertaken to suit the taste of the neo-rich next-gen and cater to the needs of growing families," Ankur Jalan, CEO, Golden Growth Fund said.
Jalan explains, "The development partner is responsible for the complete cycle of the project, from handover of the old building to government liaison, construction, quality check and other formalities. This way, the owners can maximise their gains by not liquidating their old building and instead choosing to redevelop and if required, then sell"
Experts say in such redevelopments in South Delhi, where 4 floors are allowed, the owner and development partner undertake an agreement under which the former sells one or more floors to the latter and keeps the remaining for self-use. These are also known as collaborations.
Jalan said professionally managed development partners with experience of executing projects on a large scale not only provide ease of undertaking redevelopment but also ensure quality checks and quality products.
Grovy India Limited, established in 1985, has established a strong presence in South Delhi, having delivered over 500 boutique apartments. The only exchange listed developer in this space, Grovy boasts of being equipped with skilled and experienced engineers, architects, planners, and designers dedicated to developing exceptional and vibrant luxury homes that provide not just ample space but world-class living stuffed with lifestyle amenities and comforts of modernity that match the taste of the neo-rich, like steam, sauna, jacuzzi, a private swimming pool, hi-tech security, a landscaped area, designer fittings, Italian flooring, a separate entrance, and an elevator for exclusivity and privacy, among others.
South Delhi real estate end-user driven
South Delhi is believed to show little-to-no price volatility as it is an end user driven market, purchased for self-use. The market has seen exponential growth in prices in the last three years.
Golden Growth Fund (GGF), launched in September 2024, is a Category II Alternative Investment Fund (AIF) exclusively focused on South Delhi, and aims to raise Rs 400 crore for real estate acquisitions in these areas. The Fund along with its development partner Grovy India will invest Rs 180 crore across three residential projects: Anand Niketan, Neeti Bagh and Vasant Vihar in South Delhi. The projects will have a combined sales potential of approximately Rs 240 crore.
South Delhi has nearly 18,500 privately owned residential plots, valued at ₹5.65 lakh crore, across 42 MCD-regulated colonies. This presents a significant opportunity for redevelopment projects in these upscale areas.
A recent report from Golden Growth Fund showed that the price of luxury independent floors in South Delhi has risen between 64-105% in the last three years with 6000 sq. ft. floors in Cat-A colonies showing 105% growth, from Rs 18-22 crore in June 2022 to Rs 36-45 crore in June 2025. Similarly, a 2500 sq. ft. floor in Cat-A colony saw an increase from 8-11 crore to 16-22 crore while the same in Cat-B colony witnessed a rise from Rs 5-6.5 crore to Rs 8.5-11 crore.
Jalan said the per sq. ft. rate in a Cat-A colony ranges between Rs 60,000-Rs 90,000 and in Cat-B colony between Rs 36,000-Rs 56,000 depending upon floor and colony.
"What separates South Delhi from the rest is the consistent demand, reliable and safe investment and substantial returns. Besides, it also boasts of safety of the asset against depreciation of capital."
Investors gravitating towards AIF for real estate investment
With rising property prices, investors have been gravitating away from owning physical assets and into financialised assets, like Alternative Investment Funds (AIFs). They allow for small ticket investment, Rs 1 crore without the hassle of owning, maintaining and selling the real estate asset.
Golden Growth Fund (GGF) pools capital from multiple investors to acquire a diversified portfolio of real estate assets thereby minimizing risks while maximizing potential returns of around 20% IRR.
"With a much shorter gestation period of 1.5 years, it allows investors to participate in the upscale and affluent neighbourhood with thriving commercial hubs, robust amenities and infrastructure of South Delhi," Jalan said.
The professional management drives strategic planning and market insights, resulting in consistent income generation and long-term capital appreciation, while the regulatory oversight by SEBI ensures security of investment, transparency, compliance, and accountability, he added.
(For more visit: www.grovyindia.com | www.goldengrowthfund.com)
(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)